Acorn Care to be sold for £150m+ to Canadian fund

A NORTH West education business is set to be sold to a Canadian pension fund for more than £150m.

Bolton-based Acorn Care and Education, which provides foster care services and operates schools for children with serious learning disabilities, is being sold by venture capital group Phoenix Equity Partners.

The company was expected to be sold to another private equity firm HgCapital and Canadian pension fund Ontario Teachers’ Pension Plan.

But the pension fund has now outbid HgCapital, according to reports, and a deal could be announced later this week.

The company, founded in 2005, operates 11 schools – six of which are based in the North West – and has one of the largest private fostering networks in the country.

In the year to August 31, 2008, it had a turnover of £51.8m.

Acorn is led by former Priory Healthcare chief Steve Page and education entrepreneur Kevin McNeany, founder and executive chairman of North West private schools specialist Nord Anglia Education.

Phoenix is understood to own the majority of Acorn and will make a bumper profit on its investment, while Mr McNeany holds up to 30%.